GE Workers Make Overtime Claim

August 21, 2002 (PLANSPONSOR.com) - General Electric
has classified certain workers at its aircraft engine unit as
salaried employees so it can wriggle out of paying them
overtime and other benefits, but still treats them as hourly
workers, a lawsuit charges.

According to the employee suit – the subject of a Wall
Street Journal news report — the Evendale, Ohio-based GE
unit deducted pay or vacation time from the workers for any
work absences. The suit alleged was incompatible with them
being considered as exempt workers.

The practice violates the federal Fair Labor Standards
Act and state wage and hour laws, according to the lawsuit
filed in the US District Court for the Southern District of
Ohio.

A GE spokesman denied any wrongdoing in comments to the
WSJ.

The suit also alleges that employees are expected to
work overtime hours but aren’t compensated for that labor,
because of their classification as exempt workers.

In some cases, the suit claims, employees have been
randomly selected to receive so-called planned overtime
compensation, but are paid straight time, instead of 1 1/2
times their wage rate, according to the Journal story.